Team Canada: Harper style

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Double standards at Michael Sabia's Caisse de depot

The Caisse de depot, headed by Michael Sabia, is taking issue with the $11 million signing  bonus paid to Barrick Gold's Co-Chairman John Thornton in this Globe and Mail story today, citing issues of "pay for performance", while ignoring the $21 million paid to Michael Sabia as the head of BCE, under these highly dubious circumstances (i.e his failure to sell BCE to Teachers')

Sabia got $21M golden handshake from BCE

Published on Wed Apr 01 2009

Michael Sabia received a $21-million golden handshake from BCE Inc. when he departed the telecom company last summer, before accepting his controversial appointment as head of Quebec's pension fund manager.

MONTREAL – Michael Sabia received a $21-million golden handshake from BCE Inc. when he departed the telecom company last summer, before accepting his controversial appointment as head of Quebec's pension fund manager.

Sabia's package from BCE (TSX: BCE) included severance equal to three years' salary and short-term incentives exceeding $9 million, according to a regulatory filing of BCE's proxy circular.

He also received $1.25 million related to BCE's abandoned privatization attempt, $3.1 million incentive pay, $2.9 million in accelerated vesting of stock options and $729,000 in salary until his departure July 11.

Since turning 55 in September, Sabia began to receive an annual pension of nearly $969,000.

Sabia has attempted to quell concern about his recent appointment as president and chief executive of the Caisse de depot et placement du Quebec by offering not to accept a bonus for two years, a $235,000 annual pension and another departure payment.

BCE chief executive George Cope earned $4.6 million last year. He replaced Sabia as the Ontario Teachers' Pension Plan and its partners attempted to close the $52-billion transaction, which ultimately fell apart later in the year.

Included in Cope's payment was a $2 million retention payment related to the privatization effort and a $1.2 million incentive payment. His base salary was $959,000. That amount increased to $1.25 million as of Dec. 31.

Meanwhile, board member Jim Pattison plans not to seek re-appointment to the board at BCE's May annual meeting. New nominees for the board include CAE Inc. (TSX: CAE) president Robert Brown, along with Barry Allen and Paul Weiss.

Harper's little house of horrors

Just think, each of these people listed below was hand picked by Stephen Harper. What does that tell you about Stephen Harper and his capacity for governing Canada?

The latest disgrace being Tom Flanagan, Harper's campaign manager in the 2006 election, and the individual who along with (now) Senator Doug Finlay was the one who attempted to bribe Chuck Cadman and buy his vote in Parliament, a criminal offense that Harper had foreknowledge of.

Tom Flanagan  (Tom Flanagan is okay with child pornography)

Patrick Brazeau (Senator Patrick Brazeau accused of pushing woman down stairs)

Arthur Porter ( Canada’s former spy watchdog is now a wanted man in Quebec)

Bruce Carson (influence peddling)

Mike Duffy (P.E.I. Senator Mike Duffy under fire for living expenses)

Pamela Wallin ( Senator Pamela Wallin paid back some of her expenses: report)

Flaherty strong arms the "arms length" regulator

Ethics Commissioner to look into Jim Flaherty’s letter to CRTC

BILL CURRY

OTTAWA — The Globe and Mail

Published Thursday, Jan. 17 2013, 8:53 PM EST
The federal Ethics Commissioner wants to talk to Jim Flaherty about his letter to the CRTC.

After it was revealed that the Finance Minister wrote to the arm’s-length broadcast regulator in support of a constituent’s bid for a radio licence, the Prime Minister’s Office was quick to defend Mr. Flaherty on Thursday.

But Ethics Commissioner Mary Dawson – who recently warned cabinet ministers to be careful about how they use their positions when representing constituents – wants to give the issue a closer look.
“Commissioner Dawson is aware of the issue and is following up with Minister Flaherty’s office. We cannot comment further at this time,” a spokesperson said.

The Canadian Press reported on Thursday that Mr. Flaherty wrote a letter last year in support of Durham Radio Inc.’s bid to obtain a licence for an open spot at 88.1 FM on the Toronto dial. The licence was awarded in September to Barrie’s Rock 95 Broadcasting Ltd., which will focus on independent music.

Mr. Flaherty’s March 30, 2012, letter states: “As the MP for Whitby-Oshawa, I support their proposal and their application.” Underneath Mr. Flaherty’s signature, the letter states: “The Honourable Jim Flaherty, P.C., M.P. Minister of Finance” and “Minister responsible for the Greater Toronto Area.”

A 2010 report on the Prime Minister’s website called “Accountable Government: A Guide for Ministers and Ministers of State” notes that “ministers must not intervene, or appear to intervene, with tribunals on any matter requiring a decision in their quasi-judicial capacity, except as permitted by statute.”

Carl Vallée, a spokesman for the PMO, said the Ethics Commissioner says that ministers should assist their constituents in the same way as any other MP would.

“The Minister of Finance plays no role and has no input into the deliberations or decisions of the CRTC,” Mr. Vallée wrote in an e-mail. Mr. Flaherty also released a statement defending his decision.
“I will continue to be a strong advocate for the people and community I represent,” he said. “It is my job.”

The NDP pointed out that when Liberal heritage minister Michel Dupuy sent a similar letter to the CRTC in 1994, the Reform Party demanded his resignation. Liberal defence minister David Collenette resigned from cabinet in 1996 for signing a letter to a quasi-judicial body – the Immigration and Refugee Board – on behalf of a constituent.

“It looks like the rules and the precedents would require him to step down, but the Harper government, they follow different rules,” NDP MP Andrew Cash said. “He’s not a regular MP. He’s not even a regular cabinet minister. He’s the Minister of Finance. He’s No. 2 in the government.”

Mr. Cash pointed to a July, 2012, report from the Ethics Commissioner that expressed concern that Tony Clement, when he was minister of health in 2008, used his ministerial title to promote a constituent’s work. The commissioner said that, when helping constituents, cabinet members should not use their positions as ministers in a way that would give them “greater assistance” than they would otherwise receive.

This is not the first time Conservatives have been on the defensive over last year’s competition for a radio spot.

The Globe and Mail reported in July that Paul Calandra, the Conservative MP for Oak Ridges-Markham, raised thousands of dollars in political contributions from people involved with companies bidding for the licence.

After The Globe raised the matter with Mr. Calandra, the MP gave some of the money back. He also argued that he never lobbied the CRTC on behalf of the companies tied to the political donations.

Ms. Dawson decided not to investigate whether the MP breached the Conflict of Interest Act. She also said she could not rule on whether Mr. Calandra breached the Prime Minister’s “Accountable Government” guide, because her office does not enforce those rules, the Prime Minister does.
The PMO also decided not to take action in the case of Mr. Calandra.

“The CRTC regulatory process is completely independent; politicians are not involved in any way,” PMO spokesperson Julie Vaux stated at the time.

The PMO said on Thursday it stands by its position that politicians are not involved in CRTC decisions.

Harper's actions increasingly making him the target of ridicule

I have always thought public ridicule to be one of the most effective means to bring about public change, especially where politicians are concerned. Not so sure that applies to Stephen Harper, as he seems to defy all logic. However, I think it is well worth the try now that more Canadians are realizing was a "shifty large lump" Harper truly is. Another recent example would be this YouTube video Harper  Gangnam Style.  Actually in Harper's case, it's more like Gangland Style, the examples of which are too numerous to mention.

Connecting the dots: Was Mark Carney involved in the income trust leak that cost the Liberals the 2006 election?

In view of the cosy relationship that we've learned exists between Mark Carney and Liberal MP Scott Brison, it is worth examining whether Mark Carney had a role in the income trust policy leak that cost the Liberals the 2006 election.

Dot 1:   Mark Carney and Scott Brison have been friends since approximately 2002.

Evidence: A statement dated December 17, 2012 from Jeremy Harrison, a spokesman for the Bank of Canada reads:: "Mr. Brison and Governor Carney are personal friends, and have been so for about a decade"

Dot 2:  Mark Carney was the central individual in the Department of Finance in 2005 responsible for the income trust file, whilst Ralph Goodale was Finance Minister

Evidence: In testimony before Parliament December 5, 2007,  in response to MP Garth Turner's question: "Mr. Carney, you've been called the architect of the Conservative

government's income trust strategy, and I'm wondering if that's a fair characterization?", Mark carney stated: 

    " I was a senior public servant, as you know, in the Department of Finance. Quite frankly, I was a senior public servant under the previous Liberal government and under the current Conservative government. I ran the last five budgets and all tax decisions that were put forth by both governments. I think it's safe to say I was involved, yes."

Dot 3:  Ralph Goodale stated  that he would be making an announcement at the close of the markets on Wednesday November 23, 2005 concerning the tax treatment of income trusts. This was a highly anticipated announcement and it was uncertain which direction the government would take. Whatever the announcement it would have enormous financial impact either way.  However it became obvious from trading prices and trading volumes that the substance of what Ralph Goodale was going to announce had somehow been leaked into the market ahead of the announcement, allowing certain market participants to financially benefit to the detriment of others.

Dot 4:  On the morning of November 22, 2005, the day before Goodale's announcement,  Scott Brison sent an email to Dan Nowlan, a senior investment banker at CIBC who was responsible for CIBC's overall income trust underwriting activity, and Brison stated that Nowlan would be pleased with the government's decision, a decision that had yet to be made known to the public. As someone involved in underwriting new income trust financings, that could only mean that Goodale's announcement would favour income trusts.

This type of activity is a text book case of "tipping" on Scott Brison's part and would have constituted insider trading had Dan Nowlan acted upon it.

In defending himself, Scott Brison stated in a March 2006 Globe article  that he had neither advance knowledge of Goodale's decision, nor was he speculating.  That's kind of remarkable claim, as there is no middle ground. Scott Brison was either speculating in his email to Dan Nowlan or he knew? Which was it? The more plausible explanation is that Scott Brison knew what Goodale was going to announce. How did Scott Brison know? Given that Ralph Goodale subsequently claimed that the only two MPs who knew the policy substance of what he was about to announce concerning income trusts was himself and Paul Martin, then where would Scott Brison have garnered his insights? Again the most plausible explanation would be that Scott Brison got his insight from someone working on the file inside the Department of Finance, and who more likely than Mark Carney who after all was the senior person in Finance running the file and was a personal friend of Scott Brison's?

Mark Carney's role in all of this is speculative, but clearly Mark Carney has shown bad judgement in the past when it comes to his dealings with his friends in public office, as witnessed recently.

The only person charged by the RCMP after their criminal investigation, interestingly enough, was another senior Department of Finance official, Serge Nadeau who had purchased income trusts immediately in advance of the announcement. knowing they would increase in value upon the announcement.

One thing however that is not speculative is that the obvious leak the took place in advance of Ralph Goodale's income trust announcement, had a huge impact on the marketplace, and ultimately and even greater impact on the 2006 election.  The Liberals ended up losing the 2006 election when they went from being 4 points ahead in the polls to 4 points behind in the midst of the election, when the RCMP sent a letter to NDP Finance Critic Judy Wasylycia-Leis  stating that  that they were launching a criminal investigation into the income trusts policy leak and named Ralph Goodale in that letter.

Flaherty's GM fail

Interesting that on the same day that GM announces that it's shifting future Camaro production from Oshawa to a plant in Michigan, they also announce that they're buying back $5 billion in stock from the US government....and not Canada.

Bottom line, Canada helps funds the bailout of GM, but gets none of the benefits, showing what a pathetic negotiator Jim Flaherty is. This is Flaherty's idea of an economic action plan?